Equity Crowdfunding Sites


Best Equity Crowdfunding Sites

The best equity crowdfunding sites are, of course, those that will help you reach your goals the fastest.  If you are considering investing in equity crowdfunding one of the first questions you likely have is which are the best  site out there? It can make a huge difference if you choose one of the top equity crowdfunding platforms, or at least a really good one to handle your investment.  But how to choose?  We provide a brief guide to the best equity crowdfunding portals on the net.  First we should discuss the ways in which a person can look for the best fit for them, then to how to choose among different finalists, and finally how to monitor things as you go along.

How to Choose the Best Equity Crowdfunding Sites

There are many ways to look for the best equity crowdfunding sites for your investment or pitch.  Different projects or investment ideas may require different homework, so you should keep in mind that some but not all of the following may be relevant to your choice.  Think about both your own personal preferences and also the different things that anyone would need to know and that will be your guide.  For example, if you are a visual person and you like to communicate visually or understand the merits of a product visually, look for an equity crowdfunding site that offers that kind of approach.  On the other hand if you are a reader, or a numbers person you may find subtle differences between equity crowdfunding sites that help you choose.  Here are some general rules:

Best equity crowdfunding sites give data

Look for equity crowdfunding sites that give a lot of data that appears reliable and is easy to understand. Make sure that these statistics make it easy to decide not only which investment is worthwhile, but also whether to invest in at all. The best equity crowdfunding sites will present a well-rounded and honest look at your options, with functions that make it easy to compare.  There will not be a ton of pressure and the information will appear well-rounded and fair, as if it has been vetted by someone outside the person making the request.

Best equity crowdfunding sites have traffic

The top equity crowdfunding platforms have attracted the most people and the most money, at least when compared to sites that have been around an equal amount of time. You can certainly benefit from the collective homework done by others when you make your choice for the best site for your investment.  In other words, trust the crowd!

Most top equity crowdfunding platforms are established

While it is difficult to say whether the best crowdfunding sites for equity investments are necessarily the oldest ones, there can be an advantage of looking toward an older site for your investment if it means that you can do more independent research about others’ happiness with the site. Look up independent reviews – though finding a truly independent review of the best equity crowdfunding websites can be a challenge – and also find forums where others relate their experiences. One way to see whether a review of a site is truly independent is to notice whether or not it has links to the sites being reviewed. Links may mean the person is being paid a commission by the site in question.

Use word-of-mouth

Ask around – you may be surprised to find out how many investors are turning to these sites for their own portfolios. Think of people you know who invest and seem to be open-minded and creative. They may have chosen among the best equity crowdfunding sites themselves and you can use their recommendation. They may have even tried multiple sites and can tell you how they all stacked up.  You could be surprised at how many people are into this type of funding, whether on the investor and investment side of things.

Best equity crowdfunding sites may have new innovations

This may sound like we are contradicting ourselves, but you should keep your eye out for new equity crowdfunding sites sites that bring new innovations.  You may not want to dive in right away to any new site, but we don’t want to completely dismiss them out of hand.  Every one of the top crowdfunding sites started somewhere, and if you are looking for funding but don’t want too much competition this might work.  It still may be prudent to wait until you see if the site has staying power and seems to be attracting investors.

Look for independent PR

The best equity crowdfunding sites will get PR that is genuine and well-earned.  When a site gets the notice of national media, or a project that become well-known and popular gets notice, the site itself may get new attention from investors and new presentations from excellent projects.  Whether you need an investment or are an investor, this surge in traffic and interest can be good for your own uses.  Keep notice for mentions in the news or on popular general crowdfunding websites and see if you can capitalize

Top Equity Crowdfunding Sites

All of the above seems to hint at the idea that for your purpose there is one best site for all. However, you do need to keep two things in mind when entering this arena as an investor. First, your preference as far as features and the look of a site may be unique to you, and therefore while two possibilities may truly be the top equity crowdfunding websites for you, one may be a better fit for your investment (this is how stock brokerage sites work as well – many good ones but they all differ enough so that people develop preferences). Second, nothing limits you to one “best” site. You might even want to split your initial investments between two sites and later figure out which one might be your primary go to website later on.

Keep in mind through all of this that it may be hard to undo your choice once you’ve made it.  In other words, once you’ve chosen among the best equity crowdfunding websites out there and made an investment or two, you are committing to both that investment and that site.  Unlike most other types of investment, however, most of these investments do not rely too much on timing, so there is nothing to “time” correctly.

Best equity crowdfunding sites list

So what are some possible choices for best equity crowdfunding sites?  Here are just a few:

  • For businesses that are a little more established but still perhaps in the start-up phase, Angel List may be a great choice.  You do have to have already proven your businesses ability to attract funds for this one, however.  It may be a site that you use for follow-on funding after you’ve already achieved success to some degree.
  • Endurance Lending Network may be one of the best crowdfunding sites for peer-to-peer lending.  This site is an alternative to traditional lending sources but still involves a need to pay the debt off.  A business or person with a great idea or that can prove that with better processes or equipment etc. they can do better may do well here.
  • CircleUp is an interesting platform that allows you to not only invest in an individual project, but to also invest in a circle that an established investor has created.  This circle of investments are the group of possibilities that she or he liked.  In other words, you can leave it to successful investors to build a portfolio for you.  Circle up focuses on consumer products.
  • EarlyShares describes themselves as very picky as far as which potential investments they will accept.  This may help investors who want their choices narrowed at least a little before they invest, and it can help entrepreneurs who want to be part of a select few.
  • EquityNet may be the most diverse of the equity crowdfunding sites out there.  As an investor if you want to see the full range of potential investments, and as an entrepreneur you want to have as many investors as possible looking at you pitch, this may be the site for you.

Conclusion

Finding the best equity crowdfunding sites is not as hard as it may sound, but it is a highly important decision you need to make. We do not offer any paid links here given our desire to remain a fully independent and unbiased source of information for investors and applicants.  The number of top crowdfunding sites is growing each day, with new and solid options appearing all the time.  We hope we have helped you vet those options and choose the best one for you.

Please feel free to share any advice you have from your own experiences either as an investor or person looking for an investment.  We will publish that advice as long as it is from those who do not have a stake in our visitors’ choices.  If you have questions that you’d like us to answer about the best equity crowdfunding sites let us know that as well, as we intend to add to this page as we find new important advice we can give to help people make the best choice for their purpose.

For a comprehensive list, Wikipedia provides comparisons of crowdfunding services.  If you have your favorite and/or have found success, please let us know what you think are the best equity crowdfunding sites you’d recommend.